Hedge Funds Beef Up Bearish Dollar Bets as Haven Demand Ebbs

Hedge funds and other asset managers are ramping up bets on dollar weakness using options, in a sign the market is turning even further against the US currency as haven demand wanes.

Trading in euro-dollar options jumped by nearly 60% on Friday, while demand for euro calls, which profit from gains in the shared currency, outpaced that of puts by about 30%. The volume of call options on the Australian dollar, which is seen as a barometer of risk sentiment, was more than 50% that of puts on both Friday and Monday.